The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-09-15
A SERIES OF GEORGIA BONDS.
Why There is Delay in the Payment of
Six Months Interest.
From the Albania fGnl Conatitntio,l

Six Months Interest.
From the atlanta (GdD Constitution
Mr.. Frederick Wolfe, of No. 81 West
Fifty-seventh street, New York, was caller
at the executive Office yesterday morning.
Mr. Wolfe was former resident of Ala
banla, who made large fortune in that
State, afterward removing to New York,
where he became prominent in financial Cir
ces.
1t will be remembered that Mr.. Wolfe
was the purchaser of the entire issue Of the
AZ per cent. bonds made by the State of
Georgia few years ago. Mr.. Wolfe took
the entire issue off the States hands at a
fraction above par, and well authenticated
rumors, from time TO time, have informed
the people of Georgia that considerable
number of these bonds have been sold at
prices largely in excess of what Mr. Wolfe
gave for them. But that circumstance in
dicates simply that Georgia bonds are ex-
ceedingly good securities, and Mr.. Wolfe
knew a good thing when he saw it.
Z Mr.. Wolfe arrived in Atlanta Monday
night by the Air Line, and spent yesterday
in the city. He was EN- route TO Alabama,
and only stayed long enough to call upon
the Governor and inform him that the fail
ure of the State to meet the interest ON
$219, 600 worth of bonds was likely to in
jure its credit in New York, and in other
markets of the world
In order 10 properly explain the matter,
it is necessary to go back as far as 1856.
In that year the State of Georgia sub
scribed l,S00 shares of the stock of the At
lantic and Gulf railroad, part of which it
paid in cash, and the rest in bonds. The
bonds were issued in series, as follows:
Feb. /, 1865, sIOO, 900 were issued, due Feb
l, 1878; Feb. l, 1859, 100000 We're issued,
due Feb. :, 1879; Aug. 1, 1889, 500, 900 were
issued, due Aug. /, 1S79-of this series the
last coupon was detached. for the reason
that will appear later, and the last six
months interest was met by special enact
ment of the Legislature. Feb. |, 1860,
Sl500 were issued due Feb. /, 1880; Aug.
/, 1860, $50, 900 were issued, due Aug. /, 1880
of this series no coupon was attached, and
the Legislature effected payment of last six
months interest by special enactment. Feb.
!, 1861, 100000 was issued due Feb. l,
1881; Aug. l, 1866, S21 900 were issued, due
Aug. |, 1886, no coupon being attached for
last six months interest; the bonds were
presented at the Treasury and at the State
agency in New York, and the Treasurer re-
fused to pay the interest for the reason that
there was no coupon, and he would have no
vouchers to show for the warrant he would
want, if he should pay the interest. On Aug.
l, 1867, 1900 were issued, due Aug. !,
1887, and there being no coupon, the Treas
urer treated them in the same way as he did
the series of 1886
The matter, then, is simply this. There
were $500, 900 worth of bonds of the Atlantic
and Gulf series, with only thirty-nine
coupons, when there should have been forty
coupons, on each bond, outstanding $2l 900
were retired by the Treasurer by exchange,
leaving S279000 outstanding, upon which
the last six months interest is due and has
not been paid.
When the State decided to make the
original issue, in 1856, all the bonds were en-
graved, The first coupon was ar August
coupon, and the last one on each bond was
a February coupon. But the bonds were
not all issued at the same time.
Whenever they were called for on pay
ment of subscription in January or Feb
ruary everything worked right, the bond
being dated on the LIST of that month and
that made the last coupon February one.
When, however, they We're called for in
August the bonds were obliged to be dated
then, the first coupon past due was detached
and, consequently. when the bonds came to
fall due, there was no coupon to represent
the interest from February to August of the
last year.
Each bond being for twenty years, each
had forty coupons; when they were taken
in August, coupon number one having ma
tured, was detached by Gov. Jenkins, and
the Dond Win only thlrty-nlne coupons was
issued The result is that the State owes
the bondholders six months interest not rep
resented by the fortieth coupon
Treasurer Hardeman said yesterday that
there was not the least doubt in the world
that the State owed the last six months in
terest. The similar circumstances had
arisen twice before in the same series, and
the General Assembly had paid the interest
by special enactment
81 recognize the justice of the plea, but
cannot pay it without voucher. II there
was coupon there. it would be all right,
but i'll the absence of coupon l must wait
for a law to justify me i'll paying it, When
the matter arose last year called the Gov
ernor's attention to it, and he laid it before
TIE General Assembly; it was postponed
last winter until the Legislature adjourned.
The matter is now before the Finance
Committee, and l have no doubt that
before many days the proper act will be